CERTYNEX IFRS ACADEMY

Jarvelle supports a deferred tax asset with a 'tax planning opportunity': in 20X6, it will pay the termination benefits provided for, which will make the related provision deductible. No other action is planned. Where is the error?

Planning is allowed only for tax losses.

There is no error: any action decided by management and documented in the budget is a tax planning opportunity.

The payment merely reverses an existing deductible difference: it is not a planning opportunity.

The only error is planning the payment in 20X6 rather than 20X7.